HOUSING LOAN FOR INDIVIDUALS

Sir/Madam,

This is with reference to your enquiry about the Housing Loan. As requested by You, I furnish
herewith all the details in respect of Housing Loan at State Bank of India.

The procedure of applying SBI HOUSING LOAN :

1) LEGAL OPINION: The legal clearances/ opinion of the flat/property which you are buying /
staying /constructing have to be obtained from an advocate from Bank panel.

2) VALUATION: The Engineers valuation of the property and estimate for the construction
to be obtained with bank panel engineer. In case of takeover loans from other banks, two
panel engineer valuation is required and the least value between them should be more
than the takeover amount.

(Both Legal Opinion and Engineering Valuation will be done by us)

3) Eligibility compilation for Individual Housing Loans:

To compute your eligibility, Take the Net Monthly Income (i.e. take home salary) ADD the
expected rental income from the property which you propose to buy ( if you are staying in your
own accommodation or else do not add ) - i.e your Total Net monthly income, then take
50%/55% of the total Net Monthly Income from which reduce your all existing loans EMIs if any,
and from the balance of amount arrive at your eligibility.
Eg: if the 50% of your take home salary plus the expected rental income of the property, i.e your
total net monthly income is Rs.75000/- and your existing other monthly loan commitments is
Rs.25000/-, we take Rs.50,000/- (75000 -25000) as provision for loan repayment for the
present loan and calculate the eligibility. The rate of interest for housing loans amount for a
period of 15 years for example say if it is 9.25% p.a. and the monthly EMI is RS.1029/- per lakh.
To arrive at the eligibility, we divide 50000/- by 1029/- and arrive at Rs.48.59 lakhs as your
eligible amount.

Eg: Net Month Income i.e Take home salary : 85,000/-

Expected rental from proposed property : 15,000/-
Add any other monthly regular income : -
Total Net Monthly Income : 1,00,000/-
Take 55% of this for total loan EMI provision i.e: 55,000/-
Subtract all existing loan EMI’s being paid now : 15,000/- (other loans)
Net EMI available for the present loan : 40,000/-
Now, for repayment period 15 yrs @ 9.25% the EMI/ lakh is : 1,029/-
To arrive at your eligibility Divide 40,000/- by 1029/- : Rs. 38.87 lakhs

I.E Rs.38.87 LAKHS OR 80% OF PROJECT COST WHICHEVER IS LOWER

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4) Funding: SBI funds 80% loan of the project cost which includes the cost of undivided
share of the flat /construction cost, Car Parking, KEB & BWSSB deposits, VAT & service
taxes, maintenance cost & Registration expenses ( you can add cost of interiors also by
providing the quotation for a max amount of Rs.3.00 Lacs) subject to your eligibility as
calculated above whichever is lower.

Loan Amount:

Net Annual Income Rs. EMI/NMI ratio

Upto Rs.60,000/- 20%
> Rs.60,000/- and <= Rs.1,20,000/- 25%
>Rs.1,20,000/- and <= Rs.2 lacs 30%
>Rs.2 lac and <= Rs.5 lacs 50%
> Rs.5 lacs and <= Rs.10 lacs 55%
> Rs.10 lacs 65%

MARGIN :

Loan amount Margin ( Min)

For House Under House for ready possession.
Construction
Upto Rs.75 lacs 20 % 15 %
Above Rs. 75 lacs 25 % 15 %

To enhance loan eligibility you have option to add:

1. Income of your spouse/ your son/ daughter living with you, provided they have a
steady income and his/ her salary account is maintained with SBI.
2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is
proposed to be rented out.
3. Depreciation, subject to some conditions.
4. Regular income from all sources

5) INTEREST RATES : Kindly confirm the rates at SBI Branches as the rates are
changed periodically.
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Base Rate with effect from 1st July 2010 : 7. 50 % p.a.

Interest Rates effective for the period 1st Oct 2010 to 31st December 2010

SBI Easy Home Loan – For Loan amount upto Rs.50 Lacs :
(WITH MAXGAIN FACILITY)

Interest rate for proposals

sanctioned between 1st Oct 2010
to 31st December 2010.
Loan amount Maximum Rs.50 lacs.
Facility type OD (Maxgain) or TL
Interest during first year 8 % p.a. (fixed)
2nd & 3rd Year 9 % p.a. (fixed)
Floating interest rate after 3rd Year 1.75% above Base Rate, present effective
rate being 9.25% p.a.
Fixed interest rate after 3rd year 3.50 % above Base Rate Prevailing at the
time of reset, with a reset frequency of 5 Years.

SBI Advantage Home Loan – For Loan amount above

Rs.50 Lacs to Rs.1 Cr : Max Gain Facility available
Above Rs.1 Crore : Only Term Loan facility available
(Maxgain facility is not available)

Interest rate for proposals sanctioned

between 1st Oct 2010 to 31st Dec .2010.
Loan amount Above 50 lacs/ .
Facility Type Maxgain Rs.50 lacs < 1 cr /
More than 1 Crore :Term
Loan only
Interest during First Year 8 % p.a. (Fixed)
2nd & 3rd Year 9 % p.a. (Fixed)
Floating interest rate after 3rd year 2.25 % above the Base Rate, the
present effective rate being 9.75%
p.a.
Fixed interest after 3rd year 3.50 % above the Base Rate prevailing at
the time of reset, with a reset frequency of
5 years.
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NEW HOME LOANS UNDER NORMAL VANILLA HOME LOAN PRODUCT
WHERE REATES ARE FIXED OR FLOATING ab initio THROUGHOUT THE
LOAN TERM :

a) Floating Interest Rate with effect from 1st July 2010 : (Base Rate 7.5% p.a.)

Loan amount Loan tenure Upto 5 years Above 5 years Above 15

and upto 15 years and
years upto 25 years
Loans upto Linkage with 1.75% p.a. 2% p.a. above 2.25% above
Rs.30 lacs Base rate above Base Base rate Base rate
rate
Current 9.25 % p.a. 9.50 % p.a. 9.75 % p.a.
effective rate

Above Rs.30 Linkage with 2.25 % p.a. 2.50 % p.a. 2.75 % p.a.
lacs and upto SBAR above Base above Base above Base
75 lacs rate rate rate
Current 9.75 % p.a. 10.00 % p.a. 10.25 % p.a.
effective rate

Above Rs.75 Linkage with 2.25 % p.a. 2.50 % p.a. 3.00 % p.a.
lacs. SBAR above Base above Base above Base
rate rate rate

Current 9.75 % p.a. 10.00 % p.a. 10.50 % p.a.

effective rate

b) Fixed Interest Rates : For new loans and loans due for interest rate reset :

Fixed rates ( subject to ‘force majeure’ clause and interest rate reset at the end of
every two years on the basis of fixed interest rates prevailing at that time)
Upto 10 years w.e.f 01.07.2010 Currently 10.75% p.a. for loans upto
Rs.30 lacs, i.e. 3.25%above Base Rate
as on the date of reset.
Currently 11.75% p.a. for loans above
Rs.30 lacs. i.e. 4.25% above Base
Rate as on the date of reset.

c) LOANS FOR DEPOSIT OF EARNEST MONEY FOR ALLOTMENT OF A

PLOT/HOUSE/FLAT ( Floating rates only) – w.e.f. 01.07.2010 – 5.25% above
Base Rate, present effective rate being 12.75% p.a.
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6) MAXIMUM REPAYMENT PERIOD :
 For applicants upto 45 years of age: 25 years
 For applicants over 45 years of age: 15 years

7) Expenses: a) Legal Fee/charges : Rs.1500/- Engineer's Valuation fee :

Rs.1,500/- b) Processing Fee : 0.50% of loan amount or Max.Rs.10,000/-
( Loan amount 20 lakhs to 50 lakhs Rs.7000/-) –Refer branch for details.
c) Insurance : Insurance of property building against fire/earthquake
etc with New India Assurance company to be done.
d) Govt Stamp duty : 0.10% of loan amount as stamp duty at the time of
equitable mortgage creation at the Bank. (or max Rs.20,000/-)
e) Govt Stamp papers of Rs.2000/-(approx) for execution of loan
documents at the time of sanction.
f) Govt Stamp duty : 0.10% of Loan amount or Max Rs.10,000/- for
deposit of title deeds with jurisdictional Sub registrar.

(Legal/Engineer/Processing fee cheques to be paid at the time of submission of application form

to the bank. Govt Stamp duty of 0.10%( prevailing now ) of the loan amount and Rs2000/- approx
to be paid at the time of documentation of loan. Insurance will be done after the registration of the
property.)

8) MAXGAINFACILITY : IS AVAILABLE FOR LOANS UPTO ONE

CRORE : ONLY AFTER THE FULL DISBURSAL OF THE LOAN :

SBI MAXGAIN : There are various benefits under this scheme, wherein the bank do not charge
any extra cost - the only condition is that you maintain a Savings Bank account with us. The
benefits are:
a) The account is opened as Singly Overdraft account and you will be given a cheque book for
your Housing loan account whereas other banks open as two accounts i.e principal account and
interest account.
b) The interest is calculated on daily balances in your loan account and not like other banks
where they calculate on monthly/quarterly balances. Amount remitted to your account gets the
benefit from the same day.
c) Any amount in excess of your EMI remitted goes direct to your principal and you have the
benefit of the same i.e the interest reduces and also the tenure of the loan.

d) NO penalty is charged for the excess amount remitted apart from the EMI provided you have
proof for your source of remittance/ income.

e) Excess of amount remitted apart from your EMI (monthly commitment) can be withdrawn at
any point of time during the tenure of loan period.
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9) Pre closure :
No penalty if the loan is pre closed from own savings/windfall gains for which
documentary evidence is produced by the customer.
In case, such proof is not produced by the borrower, penalty @2% on the amount prepaid
in excess of normal EMI dues shall be levied if the loan is pre closed within 3 years from
the date of commencement of repayment

10) Documents required:

ADVOCATE Check List : ( Prepare separate set )

1) Copies of Mother deed/parent document link deeds, allotment letter, Khatha
certificate/endorsement, up to date encumbrance & tax paid receipts. ( In case of
flats, if the project is already approved by SBI panel advocate even then this is
required).
2) Copies of Agreement for sale, Construction Agreement
3) ORIGINAL Sub Registrar certified copy of the Sale Deed – only for takeover loans.
4) ORIGINAL of upto date encumbrance certificate.
5) Copy of Plan sanction.
6) Copies of latest Khata certificate,Khata extract etc.
7) Upto date Tax paid receipts.
8) Copies of Sanction letter of other bank/institution & Letter of original documents
held in their custody - applicable only in case of takeover loans from other
banks/institutions.

ENGINEER’s Check List : (Kindly take the Engineer Telephone Nos from the bank to
co-ordinate with him for inspection of your property)
1) Photo copy of Agreement for sale/Sale Deed
2) Plan Sanction Copy.
3) Interior Estimate, if any, for approval by Engineer.

Builders/Sellers Check List :

1) Allotment Letter & detail split up cost of the project.
2) In case of completed projects, a letter from the builder stating that the property is
ready for registration.
3) Letter from the builder/seller the property is not mortgaged to any bank/ financial
institution. If mortgaged then an NOC from the concerned bank/institution.
4) Advance Receipt / Paid Receipts from Builder/Seller, If any.
5) Due diligence on Builders and Seller KYC Norms : Proof of Identity (PAN copy) &
Residence proof (Telephone/electricity bill - both self attested and originals
verified & attested by the bank) along with the duly filled in KYC form (form to
collect from the bank)
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Other Bank/Institution Check List ( In case of Takeover Loans) :

1) Sanction Letter of the other bank/institution.
2) Loan account statement from the date of sanction till date.
3) Preclosure letter inclusive of penalty from the other bank/institution.
4) Letter of original documents held in their custody.
5) Receipts for the total amount of the project issued by builder/seller to the
purchaser/bank/institution.

PERSONAL DOCUMENTS : CHECK LIST :From the Applicant / Co-

applicant and Guarantor, if any: - (salaried persons)

SELF ATTESTED COPIES OF DOCUMENTS Sl.No.1 to 6 :

1) Proof of Identity (passport/pan card )
2) Proof of Residence ( telephone/elec bill/ company letter)
3) Company letter – Date of appointment, position, current address
4) Salary Slip - last 3 months. (attested by the employer)
5) Salary account bank statement - last 6 months ( bank attested )

6) Form 16 for the last two years.

7) Income Tax Saral copy for the last two years.
8) Photograph - 2 nos.
9) Application Form
10) Company Profile – details of company

IMPORTANT : Kindly SELF ATTEST ALL THE ABOVE AND bring the ORIGINALS
of PROOF OF IDENTITY, PROOF OF RESIDENCE AND INCOME TAX SARAL
COPIES for attestation of Originals by the bank.

Business /Professionals : In case the applicant/co-applicant/guarantor are into

business, in addition to Proof of Identity, Residence, Photo last three years Income tax
returns/balance sheet with one year bank statement of their business account is required.

Documents Required from NRI’s applicants :

• Completed Application Form

• 2 passport size photographs of each applicant
• Proof of Identity - Copy of Passport/IC/PIO card (Passport with Visa
stamped thereon)
• Valid work permit
• Employment contract. An English translation duly attested by
employer/consulate/SBIs foreign branches/offices, Embassy in case
of any other language
 • Last six moths salary certificate/slip in original and copy of identity
card issued by the current employer/proof of income in case of self
employed professionals/businessmen .
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• Details of previous employment
• Bank Account statement/passbook for the previous six months.
Overseas Bank Account Statement/Passbook showing salary and
savings, if any
• Proof of residence (driving license / utility bills etc.)
• Copy of Continuous discharge Certificate (CDC)- for applicants
employed in the merchant navy
• Notarized Power of Attorney in respect of applicants who propose to
authorize a third party to execute the documents/complete the
mortgage formalities/avail the loan instalments.
• other documents as required by the Bank.

IMPORTANT : All the above documents to be self attested. Also bring the originals of
the above documents for additional attestation by bank. ( verification of originals by bank)

Guarantor : The bank insists on an Guarantor till the property is registered/title transferred
on your name and Equitable Mortgage registered in favour of the bank.
Guarantor details in the application with Assets & Liabilities duly filled in along with the above
mentioned documents are required.

FOR TAKEOVER LOANS FROM OTHER BANKS – GUARANTOR IS A MUST

ELIGIBILITY CRITERIA OF GUARANTOR IS THAT : 80% OF THE NET CREDIT

WORTHINESS OF THE GUARANTOR SHOULD BE MORE THAN THE LOAN AMOUNT
/TAKEOVER AMOUNT).
Important Note :
The Title holders of the property should ONLY be the borrowers. If the agreement is on the
joint names (maximum three persons), then the Sale deed also should be on the joint
names and the loan also will be on the joint names. The same is also applicable for take
over loans. i.e. Joint Owners then Joint name in the loan application / Single Owner then
Single name in the loan application.

The presence of the Guarantor is a must at the time of

application and also at the time of documentation.

Sir/Madam, I hope I have covered all the aspects of the loan, if any query please do mail me, I
will revert back to you.
Assuring you our best of services at all times,
Best Regards,

CHANDROO : SBI, PBB, Indiranagar Mobile No.98450 44737

th
375,100 ft road, 9 main Off: 25273015/25273016
HAL II STAGE, Bangalore 560 008.
Mail id : sbi.04251@sbi.co.in
: amogha94@yahoo.com